Handbag Wars

Hi, today we explore: (1) ESPN's getting into betting, (2) Game platform Roblox keeps rising, (3) America's next biggest luxury fashion house. TOGETHER WITH Today's Topics Hello! Today we're talking deals — sports deals, handbag deals, and the deals kids make with parents like "just 5 more minutes on Roblox, please": - Couldn't resist: ESPN is jumping into sports betting. - The rise of Roblox: The virtual world now has 66 million daily users. - Handbag wars: Coach vs. Michael Kors is now Coach + Michael Kors. Have feedback for us? Just hit reply — we'd love to hear from you! [Read this on the web instead]( Betting on the mouse ESPN, a division of the family-friendly giant Disney, [announced on Tuesday]( its strategic entry into the fiercely-contested arena of sports betting. To join the fray, ESPN is walking down the aisle with gambling powerhouse Penn Entertainment. However, Penn isn’t coming to the union empty-handed — the company is stumping up a staggering $2 billion to the sports network over the next decade, allowing the gaming firm’s current sportsbook to rebrand to ESPN Bet. PENN shares surged 20% on the announcement, but the real winner of the deal appears to be controversial figure, Dave Portnoy. He has acquired his sports media group Barstool Sports back [for a single dollar]( just a few years after selling the company to Penn for $551m, forming the cornerstone of its sportsbook offering at the time. The rough-and-tumble nature of Barstool’s content presented a compliance nightmare in a heavily-regulated market like gambling. And we’re off When a groundbreaking Supreme Court ruling expanded the scope of sports betting in the US — from just Nevada and three other states to now encompass 34 states — the industry immediately, perhaps unsurprisingly, boomed. And, like the athletes everyone is betting on, the companies are competing intensely. Penn's sportsbook faced stiff competition from FanDuel and DraftKings, which have together secured over 60% of the market, per data from Eilers & Krejcik [Gaming](. With the market booming, ESPN clearly couldn't sit on the bench any longer. Hard mode Roblox, the popular virtual gaming platform, disappointed investors with its latest quarterly report, revealing another net loss as the company’s costs grew, sending [shares down]( more than 20%. For those who live more in the physical world than the virtual, Roblox is an innovative twist on traditional video games. Its users are overwhelmingly the architects behind the interactive content and games that populate the platform, with a creator community that spans from impassioned hobbyists to professional studios, who profit from the sale of digital goods and advertising. Although the business side of the company may have faltered, the virtual world’s grip on its players has tightened. Its daily active user base has increased almost threefold since the beginning of 2020. Indeed, more than 66 million individuals immerse themselves in the virtual environment on a daily basis — almost equivalent to the entire population of the United Kingdom logging on. Final boss Perhaps in a bid to change the headlines, Roblox unveiled its virtual [Roblox Career Center]( yesterday, which will give select job applicants the ability to conduct their interviews in Roblox. That means using their avatars as emissaries for the entire communication — as if interview etiquette wasn’t already hard enough to get your head around. [Sponsored by LMNT]( Feeling salty? You might need… salt Drink more water is conventional wisdom. Drink more salt isn’t — but an increasing body of research shows that a sodium intake 2-3x government recommendations can support active lifestyles. The missing link is electrolytes, which is why the [biochemist-backed team at LMNT]( have developed a drink that bridges the gap. Formulated using sodium, potassium and magnesium, [LMNT remedies electrolyte deficiency]( to help prevent those day-destroying dehydration symptoms like headaches, fatigue and cramps. Want to try it? Now’s your chance: LMNT are offering Chartr readers a [free sample pack]( with any purchase, so you can try the zesty range of flavors they have to offer. With no-questions-asked refunds available on all orders, you’ve got nothing to lose by giving it a go — apart from maybe that headache that’s been bugging you all afternoon. [Claim your exclusive LMNT sample pack here]( Choo choo Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman, is set to add Michael Kors, Versace, and Jimmy Choo to its bag after striking a deal to acquire Capri Holdings in a deal [reportedly worth]( some $8.5 billion. The 6 brands netted a collective $12 billion in revenue last year and, according to Tapestry CEO Joanne Crevoiserat, will combine to create “[a new powerful global luxury house]( presumably with an eye on competing with European behemoths like [LVMH and Hermès](. Michael Kors is very much the jewel in the Capri crown. In the last financial year, MK’s bags, accessories, and clothing accounted for ~70% of Capri Holdings’ sales, and the company eked out a 22% operating margin on those sales, better than the 14% managed at Versace, and the 6% for Jimmy Choo. Of Kors it makes sense Coach and Michael Kors have been locked in a handbag war that has raged for nearly a decade. In recent years, Coach has gained the upper hand thanks to a careful strategy: don’t over-expose in department stores, re-target the younger demographic with pop-up shops and new designs, and use more sustainable materials. That trifecta has worked, with Coach able to [steadily raise prices]( — hence some analysts seeing this deal as a final victory for Tapestry. But, negotiations were presumably fierce and Tapestry is having to reach very deep into its luxury purse. The agreement has been struck at $57 for every Capri share, a whopping 59% premium over the average from the last 30 days. More Data • 4,000 steps each day could be all you need to extend your life according to a new scientific study — less than half of the regularly-touted, and sometimes regrettably-missed, [10k figure](. • Experiments at the Fermilab US particle accelerator have left scientists wondering whether they are [on the brink of discovering]( a 5th force of nature. • Waymo and Cruise’s robotaxi fleets have been given the green light in San Francisco, with the autonomous driverless cabs allowed to navigate [the city streets 24/7](. • The FDA recommends 2-3g of sodium daily, but new research suggests that 4-6g could be optimal for active lifestyles. With a science-backed ratio of electrolytes, [LMNT]( is the missing link for healthy hydration — and Chartr readers get a [free sample pack]( with any purchase.** • A new book alleges that golfing great Phil Mickelson has bet over $1 billion on sports over the last 30 years, losing $100 million [in the process](. **This is sponsored content. Hi-Viz • An insightful [visual exploration]( of how food waste impacts the environment. • Somehow, chart-making feels good in a place like this: a statistical analysis of Nicole Kidman’s notorious [AMC ads](. Off the charts: Which company, where workers just struck a new pay deal reportedly worth [$170k a year]( is seeing a totally-not-surprising uptick in interest from potential new employees? [Answer below]. [Answer here](. Thanks for reading. See you on Sunday for our deep dive! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi%2C%0A%0AI%20like%20the%20newsletters%2C%20but%20I%20had%20a%20thought%20for%20you...) or want to [sponsor]( this newsletter? Not a subscriber? Sign up for free below. [Subscribe]( Copyright © 2023 CHARTR LIMITED, All rights reserved. You are receiving this email because you opted in via our website. 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